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How aggregate supply of funds influence the equilibrium level of interest rates? Explain. Use graph to show what happens to the supply of funds if

  1. How aggregate supply of funds influence the equilibrium level of interest rates? Explain. Use graph to show what happens to the supply of funds if interest rate increases.
  2. When the economy is weak, local interest rate tends to be very low. However, if the weak economy is due to an unusually high rate of inflation, the interest rate tends to be very high. Explain why.

Please use graph.. otherwise i will give dislike

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